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Saturday, July 21, 2012

"The Power of Now..."

Presenting "The Power of Now" by Eckhart Tolle is a book that sheds light on the issue of understanding the depth of the present moment which is NOW rather than the future.

In the book, the author explains that humans tend to think about the future all the time, a concept of thinking of the thought and by doing so it creates a false sense of self. Whether it is in a form of problems or enjoyment, people tend to think of tomorrow rather than what it is today. It doesn't necessarily need to be a bad thing of course, but for some other things it may not be a good thing as well.

One such example is delaying what you are supposed to do today to tomorrow. Below are a table adapted from www.investmentmoats.com and one of my personal favorite of all time. This is an example of two investors of the same age but one (investor B) who started investing S$2000/month at the age of 19 and stopped at the age of 25 while the latter (investor A) started when he was 26 and keeps doing so until he is at the age of 65. As you can see from the table below, they ended up at the same net result. The rate of return used in the example below is 10% compounding and while a more conservative rate of return is perhaps more favorable, the idea is there - start early and start now.